LXi buys long let supported living portfolio – LXi REIT has completed the acquisition of the freehold interest in a portfolio of regulated long-let supported living properties located in Essex and Somerset. The purchase price for this portfolio is GBP9.2 million, reflecting a net initial yield of 6.0% (net of acquisition costs to the company).
Each property is immediately income producing and has been let on a new 25-year lease, with no tenant break, to a specialist Registered Provider of social housing. The Registered Provider is regulated by the Homes and Communities Agency and receives its funding for the rent payments directly from the relevant local authority.
Each lease is subject to annual upward-only rent reviews index-linked to the Consumer Prices Index (uncapped) and the Registered Provider is responsible for the costs of repair, maintenance, insurance and outgoings.
The properties in the portfolio comprise specialist, high quality supported living homes for individuals with physical and/or mental disabilities or other care needs.
The acquisition is being funded from the company’s Scottish Widows debt facility.
We wrote an article on the fund fairly recently which you can read here.
LXI : LXi buys long let supported living portfolio